A longstanding lawsuit against the town of Victor by the owners of land next to town hall has finally been resolved, and it will cost the town $65,000.

Council members voted unanimously on Oct. 9 to pay a settlement of $65,000 to property owners David and Philip Pontillo to end litigation over contamination they say occurred when underground fuel tanks were punctured during construction of the new Town Hall in building in December 2007.

In the lawsuit, originally filed in state Supreme Court March 2009, the Pontillos sought damages stemming from the discovery and removal of several old fuel tanks uncovered during construction at 85 E. Main St. Contractors punctured at least one of the tanks, they said, causing oil and other liquid to leak onto the Pontillos’ adjacent property at 99 E. Main St.

One 1,000-gallon tank, found six feet underground, leaked what was believed to be a mixture of groundwater and fuel oil after it was hit by a piece of construction equipment. Another tank, containing motor oil, also leaked into the ground. Remediation and testing for the two tanks cost the town just under $30,000 in 2008.

After the leak, the property owners said the business on their land, which they lease to a third party to run, suffered lost profits and the property value has decreased.

According to the newly passed resolution, the town admits no liability, but made the settlement “to reduce any further risk of... an adverse judgment or decision ... and continued payment of attorney’s fees.”

In return, the Pontillos agreed to discontinue their lawsuit and advise the New York State Oil Spill Fund that they are withdrawing their claim.

The tanks were believed to be about 70 years old and were likely left over from a former car dealership and gas station on the site. After the leaks were discovered in 2008, contractors from LeChase Construction removed tons of soil around the affected area, to the point where removing more would have compromised the foundation of the Pontillo property, said then project manager Kevin Reilly. At that point, engineers from Macedon-based SAW Environmental Services performed air- and water-quality tests, both of which came back negative, Reilly said.